DoD's $24.7M waste collection contract awarded to ASHBRITT INC shows potential for cost savings

Contract Overview

Contract Amount: $24,743,468 ($24.7M)

Contractor: Ashbritt Inc

Awarding Agency: Department of Defense

Start Date: 2005-10-03

End Date: 2006-03-31

Contract Duration: 179 days

Daily Burn Rate: $138.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 22

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: ABBEVILLE, LAFAYETTE County, MISSISSIPPI, 38601

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $24.7 million to ASHBRITT INC for work described as: Key points: 1. Contract value of $24.7M over 179 days suggests a high daily burn rate, warranting close performance monitoring. 2. The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating a specific justification for limiting initial bidders. 3. ASHBRITT INC's award for waste collection services highlights the critical role of specialized contractors in supporting military operations. 4. The fixed-price contract type provides cost certainty for the government, shifting performance risk to the contractor. 5. Awarding to a single entity, ASHBRITT INC, may limit immediate competitive pressure on pricing for this specific service period. 6. The contract's duration of 179 days suggests a short-term need, potentially for surge support or a specific project phase.

Value Assessment

Rating: fair

Benchmarking the $24.7 million contract value against similar Department of Defense waste collection contracts is challenging without more specific service details and duration comparisons. However, the average daily cost implied by this contract is substantial, suggesting a need to ensure efficient service delivery and resource utilization. The fixed-price nature of the award provides a degree of cost predictability, but ongoing oversight is crucial to confirm that the pricing reflects fair market value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This procurement method suggests that while the initial solicitation was open, certain sources were excluded, potentially due to specific requirements or prior performance. The number of bidders is not explicitly stated, but the exclusion of sources implies a narrower competitive pool than a truly open competition. This could impact price discovery and potentially lead to higher costs compared to a fully open process with maximum bidder participation.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price achievable through broader market engagement. Careful justification for the source exclusion is important to ensure the government obtained value for taxpayer funds.

Public Impact

Military personnel and facilities benefit from essential waste management services, ensuring operational readiness and environmental compliance. The contract supports waste collection and disposal operations, crucial for maintaining sanitary conditions on military installations. Services are geographically focused on Mississippi (MS), supporting federal operations within that state. The contract likely involves local workforce engagement for collection and disposal activities, contributing to regional employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition after source exclusion.
Need for robust performance monitoring to ensure service quality meets expectations within the fixed-price structure.
Short contract duration may indicate a temporary need, requiring careful planning for follow-on services if necessary.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Award to an established entity (ASHBRITT INC) suggests potential for reliable service delivery.
Contract supports critical operational needs for the Department of the Army.

Sector Analysis

The waste collection and disposal services sector is a critical component of the broader facilities management and logistics industry supporting government operations. This contract falls under the NAICS code 562119 (Other Waste Collection), which encompasses a range of non-hazardous waste collection services. The market includes numerous private sector providers, with competition often driven by contract size, geographic scope, and specialized service requirements. Government spending in this area is consistent, supporting both routine operations and emergency response needs.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration (ss: false, sb: false). This suggests the primary focus was on securing the required services through the most effective competitive means. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem for this specific contract appears minimal, though ASHBRITT INC may engage small businesses as part of their broader supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and their administrative team within the Department of the Army. Performance standards and delivery requirements outlined in the contract would be monitored to ensure compliance. Given the fixed-price nature, the primary accountability measure is the contractor's adherence to the scope of work and service level agreements. Transparency is generally maintained through contract award databases, though detailed operational oversight records are usually internal.

Related Government Programs

Department of Defense Facilities Support Contracts
Environmental Services Contracts
Logistics and Base Support Services
Emergency Response Waste Management

Risk Flags

Limited competition may impact price.
Need for performance monitoring due to fixed-price structure.
Short contract duration requires planning for future needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.7 million to ASHBRITT INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ASHBRITT INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2005-10-03. End: 2006-03-31.

What is ASHBRITT INC's track record with federal waste management contracts?

ASHBRITT INC has a history of securing federal contracts, particularly in the realm of emergency response and disaster recovery services, which often include waste management components. Their experience spans various agencies, including FEMA and the Department of Defense. Analyzing their past performance on similar contracts, including on-time delivery, quality of service, and any past disputes or contract modifications, would provide further insight into their reliability. Reviewing contract histories can reveal patterns in their pricing strategies and their ability to manage large-scale operations effectively. Specific details on their performance metrics for waste collection contracts would be beneficial for a comprehensive assessment.

How does the $24.7 million value compare to similar DoD waste collection contracts?

Direct comparison of the $24.7 million contract value is difficult without knowing the precise scope, duration, and specific services included. However, this represents a significant investment for a contract lasting approximately six months (179 days). It suggests either a very high volume of waste, complex disposal requirements, or a broad geographic coverage within Mississippi. Larger, multi-year base operations contracts for waste management can range from tens to hundreds of millions of dollars. This specific award appears to be for a defined, potentially intensive period, possibly related to a specific project or surge requirement, rather than routine, long-term base operations.

What are the key risks associated with this 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The primary risk associated with 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is the potential for reduced price competition. By excluding certain sources, the government may limit the number of qualified bidders, potentially leading to higher prices than if the market had been fully open. There's also a risk that the justification for exclusion might be weak, or that a more innovative or cost-effective solution from an excluded vendor was overlooked. Ensuring the exclusion criteria were valid and that the remaining pool still offered sufficient competition is crucial for mitigating these risks and ensuring value for money.

How effective is a fixed-price contract for waste collection services in a dynamic environment?

A Firm Fixed Price (FFP) contract is generally preferred for services where the scope is well-defined and risks are manageable. For waste collection, an FFP contract provides cost certainty to the government, as the contractor assumes the risk of cost overruns. This can be effective if the volume and type of waste are predictable. However, in dynamic environments, such as disaster recovery or rapidly changing operational tempos, an FFP contract might become less advantageous if unforeseen circumstances significantly increase the contractor's costs, potentially leading to change orders or performance issues if the contractor attempts to cut corners. Robust performance metrics and clear communication channels are vital to manage this.

What is the historical spending trend for waste collection services by the Department of the Army?

The Department of the Army, like other branches of the DoD, consistently spends significant amounts on waste collection and disposal services to maintain its installations worldwide. Historical spending data reveals a steady demand for these services, often fluctuating based on operational tempo, base closures/expansions, and specific mission requirements. Contracts can range from small, localized services to large, comprehensive base operating support contracts that include waste management. Analyzing trends requires looking at aggregate spending across various contract types and durations, often influenced by budget allocations and strategic priorities within the Army's infrastructure and logistics commands.

What are the implications of awarding this contract to a single entity, ASHBRITT INC?

Awarding a contract to a single entity like ASHBRITT INC means that for the duration of this specific contract, the government relies solely on that contractor for the defined waste collection services. This can streamline management and ensure continuity of service if the contractor is highly capable. However, it also removes the immediate competitive pressure that could drive further efficiencies or cost reductions. If the contract is for a critical or long-term need, the government should consider future competition strategies to ensure ongoing value and explore alternative providers to maintain market awareness and encourage competitive pricing in subsequent procurements.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Waste Collection › Other Waste Collection

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 22

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 480 S ANDREWS AVE ST2103, POMPANO BEACH, FL, 23

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912P805D0025

IDV Type: IDC

Timeline